U.S. Consumer Sentiment Improves Much More Than Expected In December

(RTTNews) - Consumer sentiment in the U.S. has improved by much more than anticipated in the month of December, according to a report released by Thomson Reuters and the University of Michigan on Friday.

The report said the preliminary reading on the consumer sentiment index for December jumped to 82.5 from the final November reading of 75.1. Economists had been expecting the index to edge up to 75.5.

With the increase, the consumer sentiment index has further offset recent decreases, climbing back toward the six-year high of 85.1 set in July.

Peter Boockvar, chief market analyst at the Lindsey Group, said, "It's now clear in this confidence figure how much of an impact the goings on in D.C. had and luckily consumers have shrugged that off, as they should."

"With also help from an improving labor market and lower gasoline prices we hope that confidence continues to improve in months to come but as seen with holiday retail sales so far, consumers still seem to be keeping spending close to the vest," he added.

The increase by the headline index came as the barometer of current economic conditions jumped to 97.9 in December from 88.0 in November. The gauge of consumer expectations also rose to 72.7 from 66.8.

The report also showed that one-year inflation expectations ticked up to 3 percent in December from 2.9 percent in November. Meanwhile, the five-to-ten-year inflation outlook dipped to 2.8 percent from 2.9 percent.